§ Mr. Alan HowarthTo ask the Secretary of State for Social Security what is his estimate of the costs and savings to individuals and employers of aligning the national insurance lower earnings limit and the personal tax allowance at(a) £62 and (b) £70 per week for the year 1997–98. [18978]
§ Mr. HealdThe information is in the table:
Estimated increase/decrease in revenue from aligning the national insurance contribution lower earnings limit and the personal tax allowance for 1997–98 at (a) £62 and (b) £70 (a)£62 (b)£70 Employee contributions1 Nil -£575 million Employer contributions1 Nil +£100 million2 Income Tax3 +£4.7 billion4 +£2.3 billion4 Notes:
1Source: Government Actuary's Department.
2The estimated net gain in revenue from employers' national insurance contributions arises from the counter effect of the contracted-out rebate being applied to a narrower band of earnings.
3Source: Inland Revenue.
4Estimates based on information projected from the 1994–95 survey of personal incomes and the 1994–95 family expenditure survey.Figures include the tax yield from reducing the aged personal allowances for people aged 65, whose total income is greater than the aged income limit of £15,600, or over to a minimum level equivalent to (a) £62 per week or (b) £70 per week.